Enlarged Scientific Games reduces group net losses in 2016by Joker 03.03.2017 0 comments
Publishing its full-year 2016 results, Nasdaq-listed Scientific Games Corp (SGC) has reported group net losses of $110 million for its Q4 2016 performance (period ending 31 December).
The industry games machine manufacturer reports that its losses were incurred despite combined SGC divisions reporting a fifth straight quarter of revenue growth to $752 million (Q4 2015: $737 million).
Closing its full-year 2016 performance, SGC governance detailed that its top-line metrics continue to be impacted by hefty ‘goodwill impairment charges’ and restructuring costs attached to its 2014 $6 billion acquisitions of competitors WMS Gaming and Bally Technologies.
Updating investors on full 2016 metrics, SGC would record a reduced group operating loss of $353 million (FY 2015: -$1.39 billion). SGC governance would declare that the company had paid $126 million in operating costs as the company was charged with a $69.0 million non-cash goodwill impairment charge as well as $57.0 million of restructuring and further acquisition expenses.
SGC governance would reveal that it had reduced its corporate debt to approximately $8 billion, having repaid debt-contributions of 170 million.
Moving forward, SGC governance reported a corporate strategy update for 2017, in which the company will look to ‘refine’ its enlarged operations with a view to improving its product operating margins and boost revenue performance.
Speaking to shareholders Scientific Games CEO Kevin Sheehan commented on corporate performance
“With 2017 off and running, we are maintaining focus on playing smart to galvanize our business growth. We are driving innovation to create new, differentiated products for our customers, improve financial performance to accelerate deleveraging, and build a culture open to new ideas and committed to exceeding the expectations of our customers and stakeholders,”